Big Money Friday – Boston Scientific to Pay DOJ $296 Million
It's always the cover-up that gets you in trouble. If Guidant would have just revealed the problems with its implantable defibrillators we wouldn't be seeing this story. Guidant failed to properly notify the FDA of the problem, DOJ mounted an investigation, and now the quarterly profits for Boston Scientific reflect a net loss of $94 million rather than a net income of $200 million. Moral of the story… tell the truth.
Nov. 6 (Bloomberg) -- Boston Scientific Corp. agreed to pay $296 million to settle a U.S. Justice Department investigation into its Guidant unit's handling of heart devices and restated third-quarter results to show a loss.
Guidant will plead to two criminal misdemeanors for failing to properly alert the U.S. Food and Drug Administration about problems with some of its implantable defibrillators, Boston Scientific said today in a statement. The probe concerned product advisories sent by Guidant before its acquisition by Boston Scientific in April 2006, the parent company said.
See the full story here.